Post Utme Skyline University 2017 Commerce Question 39

Practice objective / multiple choice question 39 from the 2017 Post Utme Skyline University Commerce examination.

Post Utme Skyline University 2017 Commerce Objective / Multiple Choice
Question 39 POST_UTME_SKYLINE_UNIVERSITY • 2017 • COMMERCE • objective

A firm is considering two different production processes for a new product. Process A has a fixed cost of ₦500,000 and a variable cost of ₦100 per unit. Process B has a fixed cost of ₦750,000 and a variable cost of ₦80 per unit. If the firm produces 10,000 units, which process is more profitable?

Answer Options

Correct Answer A. Process A
B. Process B
C. Both processes are equally profitable
D. Neither process is profitable
Correct Answer
A
Correct Option:
Process A

About This Question

This is Post Utme Skyline University 2017 Commerce Question 39. It is one of the objective questions from the 2017 Post Utme Skyline University Commerce examination.

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